ID :
31042
Wed, 11/19/2008 - 09:39
Auther :
Shortlink :
http://m.oananews.org//node/31042
The shortlink copeid
BI NOT TO LET RUPIAH DEVELOP UNREALISTICALLY
Jakarta, Nov 18 (ANTARA) - Bank Indonesia (BI) Governor Boediono said the central bank would not let the rupiah in the market develop unrealistically because that would harm the national economy.
"We will not let the rupiah market develop unrealistically," the BI governor said after a meeting with Finance Minister Sri Mulyani Inrawati here on Tuesday.
He said that with its various instruments, BI would do its best to keep the rupiah exchange rate at a normal and realistic level.
"In essence, we are going to keep the rupiah value at a level which is good for the economy," he added.
The BI governor said that the rupiah depreciation had been caused by a combination of various factors.
"It is a combination of various factors. I think it is due to demand and supply. There is corporate demand for dollar currency for paying obligation and importing goods," he said.
Boediono also said previously that various external factors had also caused the depreciation of the rupiah. "Pressures on the exchange rates on other currencies also happened in other countries, not only in Indonesia," he added.
The external factors also affected the rupiah exchange rate, Boediono said.
Meanwhile, Bank Indonesia Senior Deputy Governor Miranda S Goeltom said recently many countries in the world were currently facing liquidity problems as dollars were returning to the US to cover losses there. Because of this condition, liquidity in other countries had declined causing some countries such as Pakistan to ask for IMF loans.
She said the situation had also caused many currencies to weaken, including the Indonesian rupiah.
The rupiah had depreciated 16.88 percent from October until November 11. Within this week it depreciated around 7.1 percent.
Indonesia's foreign exchange reserves by the end of October were recorded at US$50.58 billion or down US$6.52 billion or the most in 2008, compared to US$57.108 billion in September.
"We will not let the rupiah market develop unrealistically," the BI governor said after a meeting with Finance Minister Sri Mulyani Inrawati here on Tuesday.
He said that with its various instruments, BI would do its best to keep the rupiah exchange rate at a normal and realistic level.
"In essence, we are going to keep the rupiah value at a level which is good for the economy," he added.
The BI governor said that the rupiah depreciation had been caused by a combination of various factors.
"It is a combination of various factors. I think it is due to demand and supply. There is corporate demand for dollar currency for paying obligation and importing goods," he said.
Boediono also said previously that various external factors had also caused the depreciation of the rupiah. "Pressures on the exchange rates on other currencies also happened in other countries, not only in Indonesia," he added.
The external factors also affected the rupiah exchange rate, Boediono said.
Meanwhile, Bank Indonesia Senior Deputy Governor Miranda S Goeltom said recently many countries in the world were currently facing liquidity problems as dollars were returning to the US to cover losses there. Because of this condition, liquidity in other countries had declined causing some countries such as Pakistan to ask for IMF loans.
She said the situation had also caused many currencies to weaken, including the Indonesian rupiah.
The rupiah had depreciated 16.88 percent from October until November 11. Within this week it depreciated around 7.1 percent.
Indonesia's foreign exchange reserves by the end of October were recorded at US$50.58 billion or down US$6.52 billion or the most in 2008, compared to US$57.108 billion in September.
